Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

Universitas Education, LLC sought to recover funds lost in an insurance fraud scheme orchestrated by Daniel Carpenter, which defrauded Universitas of $30 million in life insurance proceeds. The fraud involved multiple corporate entities, including Avon Capital, LLC, and its affiliates. Universitas secured a civil judgment in the Southern District of New York for $30.6 million, including $6.7 million against Avon Capital, LLC. Universitas registered the judgment in Oklahoma and sought to garnish a $6.7 million insurance portfolio held by SDM Holdings, which Avon owned.The United States District Court for the Western District of Oklahoma granted summary judgment in favor of Universitas and authorized a receivership over Avon and SDM. Avon and SDM appealed, arguing procedural defects and disputes on the merits. The Tenth Circuit Court of Appeals vacated the summary judgment on mootness grounds, determining that the district court could not rely on the registered judgment because its five-year effective term had expired before the district court entered its order. The case was remanded for further proceedings.Upon remand, Universitas re-registered the New York judgment, and the district court re-entered summary judgment in favor of Universitas and reauthorized the receivership over Avon and SDM. Avon and SDM challenged the district court's jurisdiction and the re-entered orders. The Tenth Circuit Court of Appeals affirmed the district court's decision, holding that the district court retained jurisdiction to preserve the status quo during the appeal and properly re-affirmed its summary judgment and receivership orders after receiving the appellate mandate. The court concluded that Universitas did not need to file a new cause of action and that the district court did not abuse its discretion in its rulings. View "Universitas Education v. Avon Capital" on Justia Law

Phelps Oil and Gas, LLC, leased land to Noble Energy, Inc., which produces natural gas and pays royalties to Phelps. Phelps filed a class action lawsuit against Noble, alleging underpayment of royalties. The dispute centers on the interpretation of a prior settlement agreement, the Holman Settlement, which outlines the royalty calculation method. Phelps claims Noble failed to pay royalties on $34 million from a DCP Midstream, LP audit and $17.5 million that DCP promised to invest in infrastructure.The United States District Court for the District of Colorado granted summary judgment in favor of Noble. The court found that Noble was not obligated to pay royalties on the $34 million because DCP never returned those proceeds to Noble. Regarding the $17.5 million, the court held that Phelps failed to show that the promise had value to Noble beyond increased production and resulting revenues.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court affirmed the district court's decision, agreeing that Phelps did not present evidence that DCP returned any proceeds to Noble related to the $34 million. The court also upheld the summary judgment on the $17.5 million claim, finding that Phelps could not demonstrate that the promise provided any additional benefit to Noble aside from increased production and revenues, which Noble had already accounted for in its royalty payments.The Tenth Circuit concluded that Phelps failed to create a genuine issue of material fact regarding Noble's obligation to pay additional royalties under the Holman Settlement. The court affirmed the district court's judgment in favor of Noble Energy, Inc. View "Phelps Oil and Gas v. Noble Energy" on Justia Law

The case involves Justin Ness, who was convicted of possessing a firearm and ammunition after a felony conviction. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated Ness based on evidence from his public Facebook page, which included photos and videos of him with firearms. A search warrant for his private Facebook page revealed further evidence, leading to a search of his trailer, where a firearm and ammunition were found. Ness was indicted for possessing the firearm and ammunition on or about September 8, 2021.The United States District Court for the Eastern District of Oklahoma held a two-day trial in March 2022. The government presented evidence from Ness's Facebook account and testimony from ATF agents. Ness's defense included testimony from a friend, Geoff Irwin, who claimed ownership of the firearm, and Ness himself, who denied knowing about the firearm and ammunition in his trailer. The jury was instructed that the government needed to prove the crime occurred "reasonably near" the alleged date. During deliberations, the jury asked for clarification on the timeline, but the court responded that they had all the evidence needed to render a verdict.The United States Court of Appeals for the Tenth Circuit reviewed the case. Ness argued that the district court erred by not clarifying the "on or about" instruction, which he claimed could have led to his conviction for uncharged conduct from several months earlier. The Tenth Circuit held that the district court did not err in its response to the jury's question and that Ness failed to show plain error or that his substantial rights were affected. The court affirmed Ness's conviction. View "United States v. Ness" on Justia Law

Curtis Park Group, LLC (Curtis Park) encountered a significant issue during the construction of a new development called S*Park, which included five buildings supported by a single concrete slab. The slab began to sag due to construction defects, and Curtis Park hired a consultant to determine the cause and necessary repairs. The repairs cost $2,857,157.78, which were fronted by the general contractor, Milender White, as per their agreement. Curtis Park had a builder’s risk insurance policy with Allied World Specialty Insurance Company (Allied World) but did not include Milender White or subcontractors as named insureds.The United States District Court for the District of Colorado reviewed the case, where Curtis Park sued Allied World for breach of contract and bad faith after Allied World denied coverage for the repair costs. The district court ruled that Curtis Park could seek coverage for the repair costs even though Milender White had absorbed these costs. The jury found in favor of Curtis Park on the breach-of-contract and statutory bad-faith claims but not on the common-law bad-faith claim. Allied World’s motions for a new trial and judgment as a matter of law were denied.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court held that the district court erred in interpreting the insurance policy to allow Curtis Park to recover repair costs it had not paid and had no obligation to pay. The policy explicitly limited recovery to the amount the named insured (Curtis Park) actually spent on repairs. The Tenth Circuit reversed the jury’s verdict and remanded for a new trial, instructing that Curtis Park cannot recover the costs of repair that it did not pay. The court also vacated the remainder of the judgment and remanded for a new trial on all other issues. View "Curtis Park Group v. Allied World Specialty Insurance Company" on Justia Law

Plaintiff John Doe filed a class action lawsuit against Integris Health, Inc., alleging that Integris collected confidential health information from its website visitors and unlawfully shared it with third parties like Google and Facebook. Doe's complaint, filed in Oklahoma state court, asserted state law claims including negligence, invasion of privacy, and breach of fiduciary duty. Integris removed the case to federal court under the federal officer removal statute, claiming it was acting under the direction of a federal officer by helping the federal government achieve its objective of ensuring patient access to electronic health records (EHR).The United States District Court for the Western District of Oklahoma remanded the case to state court, concluding that Integris had not demonstrated it was "acting under" the direction of a federal officer. The court found that Integris was merely complying with federal regulations, which is insufficient to establish federal officer jurisdiction.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court's decision. The Tenth Circuit held that Integris was not "acting under" a federal officer because it was only complying with federal regulations and not fulfilling a basic government task. The court emphasized that compliance with federal law, even if highly detailed and supervised, does not equate to acting under a federal officer. The court also noted that Integris's use of tracking technology on its website was not required by the federal government and was not part of any federal directive. Therefore, the court concluded that removal under the federal officer removal statute was improper. View "Doe v. Integris Health" on Justia Law

Joseph Harjo was tried and convicted by a jury in Oklahoma federal court for aggravated sexual abuse in Indian Country under the Major Crimes Act. The district court sentenced him to life in prison. Harjo challenged his conviction, arguing that the Major Crimes Act is unconstitutional and that the district court abused its discretion in admitting evidence of prior child abuse under Federal Rule of Evidence 414.Previously, Harjo was charged by the state of Oklahoma with child sexual abuse and was convicted by a state jury, resulting in a life sentence. However, following the Supreme Court's decision in McGirt v. Oklahoma, which determined that Muskogee was within the Muscogee Creek Nation, Oklahoma's jurisdiction was invalidated, and Harjo's conviction was set aside. Subsequently, a federal grand jury indicted him on one count of aggravated sexual abuse in Indian Country.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court affirmed the constitutionality of the Major Crimes Act, citing controlling Supreme Court precedent that establishes Congress's plenary power over Indian affairs and the unique status of Indians as a separate people with their own political institutions. The court also found that the district court did not abuse its discretion in admitting the testimony of five child witnesses under Rule 414. The district court had determined that a reasonable jury could conclude the prior acts occurred by a preponderance of the evidence and that the probative value of the testimony was not substantially outweighed by the risk of unfair prejudice.The Tenth Circuit concluded that the district court carefully addressed the relevant factors and reached a permissible conclusion on the admissibility of the testimony. Therefore, the court affirmed Harjo's conviction and life sentence. View "United States v. Harjo" on Justia Law

Deborah Bradshaw and Chrystal Antao sued American Airlines and Mesa Airlines, alleging injuries and damages from the airlines' negligent handling of an in-flight emergency. During a June 2020 flight, the aircraft experienced a malfunction that led to a loss of cabin pressure, requiring an emergency descent. The plaintiffs claimed the pilot failed to properly inform passengers of the threat and descended too rapidly, while American Airlines failed to provide medical personnel upon landing.The case was initially filed in the District Court of Tulsa County, Oklahoma, and later removed to the United States District Court for the Northern District of Oklahoma on diversity grounds. The district court granted summary judgment in favor of the airlines, concluding that federal law preempted Oklahoma's common-carrier standard of care in aviation safety. The court allowed the plaintiffs to pursue a state negligence claim using the federal "reckless-or-careless manner" standard but found no evidence that the airlines violated this standard.The United States Court of Appeals for the Tenth Circuit reviewed the case. The court affirmed the district court's decision, holding that the Federal Aviation Act and related regulations preempt state law in the field of aviation safety. The court agreed that the federal "careless or reckless manner" standard of care applies, preempting Oklahoma's common-carrier standard. The court found no genuine issue of material fact regarding a violation of federal regulations by the airlines and upheld the summary judgment in favor of the defendants. View "Bradshaw v. American Airlines" on Justia Law

Steven M. Hohn, the defendant, was convicted of multiple drug and firearm charges. While awaiting trial, he was detained at CoreCivic, where the Kansas U.S. Attorney’s Office (Kansas USAO) obtained and listened to his attorney-client phone calls. Hohn later discovered this and filed a 28 U.S.C. § 2255 petition to vacate his judgment or reduce his sentence, arguing that the government’s intrusion violated his Sixth Amendment rights.The United States District Court for the District of Kansas denied Hohn’s § 2255 petition. The court found that Hohn did not have a reasonable expectation of confidentiality in his attorney-client call because he knew the call would be recorded and did not follow the proper steps to privatize it. The court also concluded that Hohn waived the attorney-client privilege by making the call despite knowing it would be recorded. Consequently, the court did not reach a direct Sixth Amendment analysis, as it determined that the privilege was a necessary underpinning of Hohn’s Sixth Amendment right.The United States Court of Appeals for the Tenth Circuit reviewed the case en banc. The court overruled its precedent in Shillinger v. Haworth, which had established a structural-error rule presuming prejudice when the government intentionally intrudes into the attorney-client relationship without a legitimate law-enforcement purpose. The Tenth Circuit held that a Sixth Amendment violation of the right to confidential communication with an attorney requires the defendant to show prejudice. Since Hohn conceded that he suffered no prejudice from the prosecution’s obtaining and listening to his six-minute call with his attorney, his claim failed. The Tenth Circuit affirmed the district court’s decision denying Hohn’s § 2255 petition. View "United States v. Hohn" on Justia Law

Autumn Bertels was severely injured in a car accident involving her grandmother, Elizabeth Bertels, and another driver, Denver Barr, who both died in the crash. Autumn later filed a lawsuit against Elizabeth's estate, and they reached an agreement where the estate assigned its claims against Elizabeth's insurer, Farm Bureau Property & Casualty Insurance Company, to Autumn. The agreement stipulated that Autumn would not seek to collect from the estate's assets and would cover the estate's litigation expenses. A judge awarded Autumn a $15.75 million judgment against the estate, and she subsequently sued Farm Bureau for breach of contract and bad faith.The United States District Court for the District of Kansas dismissed Autumn's suit against Farm Bureau, ruling that she lacked standing because the assignment from the estate was invalid. The court determined that Autumn provided no consideration for the assignment, as her promises were already required by the Kansas nonclaim statute, which bars claims against a deceased person's estate after a certain period and requires the claimant to pay the estate's litigation expenses.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the nonclaim statute barred Autumn's claim against the estate's assets and required her to pay the estate's expenses, rendering her promises in the agreement illusory and without consideration. Consequently, the assignment was invalid, and Autumn lacked standing to sue Farm Bureau. The court also rejected Autumn's arguments regarding tolling of the nonclaim statute due to her minority and other constitutional claims, finding them unpersuasive or procedurally barred. View "Bertels v. Farm Bureau Property & Casualty Insurance Co." on Justia Law

Newton Jones, the President of the International Brotherhood of Boilermakers, was removed from office and expelled from the Union by the Union’s Executive Council after it was determined that he had misused Union funds. Jones challenged the disciplinary proceedings in the United States District Court for the District of Kansas, arguing that the proceedings violated the Union Constitution and his due-process rights under the Labor-Management Reporting and Disclosure Act (LMRDA). He also claimed that the district court erred by not allowing him sufficient time to respond to the motion for summary judgment and by not permitting discovery.The district court granted partial summary judgment in favor of the Vice Presidents who had acted against Jones, affirming their decision to remove him from office. The court ruled that the Executive Council’s decision was binding and entitled to full effect. Jones then appealed the district court’s summary judgment.The United States Court of Appeals for the Tenth Circuit reviewed the case and affirmed the district court’s summary judgment. The appellate court held that the Executive Council did not violate the Union Constitution in removing Jones from office. The court deferred to the Union’s interpretation of its constitutional provisions, concluding that the Council’s interpretations were not unreasonable. The court also found that Jones had not shown any violation of the LMRDA or any error by the district court in conducting the summary-judgment proceedings.The Tenth Circuit concluded that Jones received a full and fair hearing under the LMRDA and that the district court did not err in setting an expedited briefing schedule or in not allowing additional time for discovery. The court affirmed the district court’s order granting summary judgment. View "International Brotherhood of Boilermakers v. Jones" on Justia Law